UNIT I & II MCQ accounts

According to straight line method of providing depreciation, the depreciation

• (a) Remains constant

• (b) Increase each year.

• (c) Decrease each year

• (d) None of them.

2.Depreciation is calculated under diminishing balance method, based on

• (a) Original value

• (b) Book value

• (c) Scrap value

• (d) None of them

3.Under the annuity method of depreciation, the charge is

• (a)    Increasing every year.

• (b)    Decreasing every year.

• (c)    Fixed for all years.

• (d)    Fluctuating from year to year

4. Depreciation is charged on

• (a)    Fixed assets.

• (b)    Current assets.

• (c)    Both fixed and current assets.

• (d)    None of the above.

5.1. Depreciation is a process of _________

• valuation

• reduction

• allocation

• appreciation

6..The value of asset can be reduced to zero under this method _____

• A. straight line method .

• B. written down value method.

• C. annuity method.

• D. depreciation fund method.

7..Under annuity method the amount of depreciation is found out from ____

• A. log tables.

• B. sinking fund tables.

• C. annuity tables.

• D. present value

9. If the opening capital is Rs. 60,000, drawings Rs. 5,000, capital introduced during the period Rs. 10,000, closing capital Rs. 90,000. The value of profit earned during the period will be ______

• (a) Rs. 20,000

• (b) Rs. 25,000

• (c) Rs. 30,000

• (d) Rs. 40,000

11. Accounts that are maintained under a single entry system is ______

• (a) Personal accounts

• (b) Impersonal accounts

• (c) both (a) and (b)

• (d) None of these

Opening capital is ascertained by preparing _________

• (a) Total debtor’s account

• (b) Total creditor’s account

• (c) Cash account

• (d) Opening statement of affairs